Transcript Competitve Positioning - Southern Methodist University

Competitive Positioning
and
Competitive Advantage
Professor Chip Besio
Cox School of Business
Southern Methodist University
Review of STP
 Segmentation
– Identify basis(bases) for segmenting the market
– Develop profiles of segments
 Targeting
– Determine segment attractiveness
– Select segment(s) to target
 Positioning
– Develop product positioning for each target segment
– Develop marketing mix for each target segment
Positioning
 The place that the product or service occupies in
the customer’s mind relative to competing
products
 Positioning should be superlative
– Most
– Best
– Strongest
– Fastest
Is the positioning believable?
Positioning
HOW DO YOU DO IT?
Differentiate
the product
Step 1 - Identify a set of possible advantages relative
to competitors
Step 2 - Select the competitive advantage(s) most
important to the target market
Communicate
the selected positioning
Step 3 - Effectively communicate and deliver the
chosen positioning in the market
Differentiation is Based on
Competitive Advantage
 Competitive Advantage - An advantage enjoyed
by a single product relative to other products in
the market
 General sources of competitive advantage:
– Overall cost leadership - can offer best value;
lowest prices
– Product differentiation - unique product
characteristics or associations
– Narrow customer focus (niching) - addresses
wants and needs of particular customer segment(s)
Adapted from: Michael Porter
Sustainable Competitive
Advantage
Is the competitive advantage difficult for
competitors to emulate?
–
–
–
–
Can competitors copy you?
How quickly?
How much investment is required?
Can the company continue to improve on its
advantage?
Positioning Strategy
Development Process
1 Identify the competitors.
2 Assess perceptions of them.
3 Determine their positions.
4 Analyze consumer preferences.
5 Make the positioning decision.
Positioning
PERCEPTUAL MAP
Definition: A spatial representation of how target
customers perceive competing brands
– Brands that are perceived to be similar are located close
to each other
– Brands that are perceived to dissimilar are further apart
Use the perceptual map to:
– Determine how target customers perceive the product
– Identify competitors
– Select a positioning
Using positioning and perceptual maps to
increase milk sales to children and adults
Strategies for positioning dairy drinks for
kids and repositioning chocolate milk to
reach adults
Select a Positioning
Selection of a positioning depends on:
 Ideal point for target customers
 Current perceptions of the product
 Product’s competitive advantage(s)
Select a Positioning
There are four general positioning strategies:
 Head-on
 With an Idea
 For Social Accountability
 U.S.P. - Unique Selling Proposition
Select a Positioning
Product
Attribute(s)
Value
Away from
Competitors
Benefit(s)
Offered
G
H
C
A
Against a
Competitor
D
E
Product User
B
F
Product
Usage
Cultural Symbols
Adapted
from: Prentice
Hall
Communicate a Positioning
USP
Establishing the product’s positioning in the
mind of the target customer requires the
communication of a:
Unique Selling Proposition (USP)

Why should the customer choose your
product?
USP Example
CAR RENTAL
Match the USP on the left to the car rental
company on the right
The standard for reliability and
convenience in car rental
Enterprise
We work harder to provide the
best possible service
Hertz
We get the car to you, whenever,
wherever you need it
Avis
Use the Marketing Mix to
Support the Positioning
 Based
on the positioning and unique
selling proposition, develop a marketing
mix plan for each targeted segment
Marketing Mix 1
Segment 1
Marketing Mix 2
Segment 2
Marketing Mix 3
Segment 3
STP Review
1.
Divide market into segments, each of which
behaves differently vis-à-vis your product
2.
Select certain segment(s) and focus on them
3.
Tailor a marketing mix for each segment
4. Think small!